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v3.26.1

BUSINESS SEGMENTS (Tables) | 6 Months Ended
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Jun. 30, 2026
Segment Reporting [Abstract] |
Reconciliation of Business Segment Information in Consolidated Statement of Operations | A reconciliation of our business segment information to the respective information in our Consolidated Statement of Operations is as follows:
DOLLAR AMOUNTS IN MILLIONS |  | TIMBERLANDS |  |  | STRATEGIC LAND SOLUTIONS |  |  | WOOD PRODUCTS |  |  | UNALLOCATED ITEMS AND INTERSEGMENT ELIMINATIONS |  |  | CONSOLIDATED |
QUARTER ENDED JUNE 2026 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net sales to unaffiliated customers |  | $ | 367 |  |  | $ | 140 |  |  | $ | 1,360 |  |  | $ | — |  |  | $ | 1,867 |
Intersegment sales |  |  | 151 |  |  |  | — |  |  |  | — |  |  |  | (151 | ) |  |  | — |
Total |  |  | 518 |  |  |  | 140 |  |  |  | 1,360 |  |  |  | (151 | ) |  |  | 1,867 |
Costs of sales |  |  | 434 |  |  |  | 38 |  |  |  | 1,223 |  |  |  | (139 | ) |  |  | 1,556 |
Gross margin |  |  | 84 |  |  |  | 102 |  |  |  | 137 |  |  |  | (12 | ) |  |  | 311 |
Selling expenses |  |  | 1 |  |  |  | — |  |  |  | 23 |  |  |  | — |  |  |  | 24 |
General and administrative expenses |  |  | 24 |  |  |  | 8 |  |  |  | 37 |  |  |  | 46 |  |  |  | 115 |
Other segment items(1) |  |  | (71 | ) |  |  | — |  |  |  | 6 |  |  |  | 24 |  |  |  | (41 | )
Net contribution (charge) to earnings |  | $ | 130 |  |  | $ | 94 |  |  | $ | 71 |  |  | $ | (82 | ) |  | $ | 213 |
QUARTER ENDED JUNE 2025 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net sales to unaffiliated customers |  | $ | 373 |  |  | $ | 154 |  |  | $ | 1,357 |  |  | $ | — |  |  | $ | 1,884 |
Intersegment sales |  |  | 156 |  |  |  | — |  |  |  | — |  |  |  | (156 | ) |  |  | — |
Total |  |  | 529 |  |  |  | 154 |  |  |  | 1,357 |  |  |  | (156 | ) |  |  | 1,884 |
Costs of sales |  |  | 416 |  |  |  | 44 |  |  |  | 1,243 |  |  |  | (144 | ) |  |  | 1,559 |
Gross margin |  |  | 113 |  |  |  | 110 |  |  |  | 114 |  |  |  | (12 | ) |  |  | 325 |
Selling expenses |  |  | 1 |  |  |  | — |  |  |  | 22 |  |  |  | — |  |  |  | 23 |
General and administrative expenses |  |  | 24 |  |  |  | 6 |  |  |  | 40 |  |  |  | 44 |  |  |  | 114 |
Other segment items(1) |  |  | — |  |  |  | (2 | ) |  |  | 6 |  |  |  | 19 |  |  |  | 23 |
Net contribution (charge) to earnings |  | $ | 88 |  |  | $ | 106 |  |  | $ | 46 |  |  | $ | (75 | ) |  | $ | 165 |
YEAR-TO-DATE ENDED JUNE 2026 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net sales to unaffiliated customers |  | $ | 723 |  |  | $ | 347 |  |  | $ | 2,524 |  |  | $ | — |  |  | $ | 3,594 |
Intersegment sales |  |  | 287 |  |  |  | — |  |  |  | — |  |  |  | (287 | ) |  |  | — |
Total |  |  | 1,010 |  |  |  | 347 |  |  |  | 2,524 |  |  |  | (287 | ) |  |  | 3,594 |
Costs of sales |  |  | 843 |  |  |  | 70 |  |  |  | 2,310 |  |  |  | (258 | ) |  |  | 2,965 |
Gross margin |  |  | 167 |  |  |  | 277 |  |  |  | 214 |  |  |  | (29 | ) |  |  | 629 |
Selling expenses |  |  | 1 |  |  |  | — |  |  |  | 45 |  |  |  | 1 |  |  |  | 47 |
General and administrative expenses |  |  | 49 |  |  |  | 14 |  |  |  | 76 |  |  |  | 95 |  |  |  | 234 |
Other segment items(1) |  |  | (128 | ) |  |  | — |  |  |  | (20 | ) |  |  | 46 |  |  |  | (102 | )
Net contribution (charge) to earnings |  | $ | 245 |  |  | $ | 263 |  |  | $ | 113 |  |  | $ | (171 | ) |  | $ | 450 |
YEAR-TO-DATE ENDED JUNE 2025 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net sales to unaffiliated customers |  | $ | 755 |  |  | $ | 248 |  |  | $ | 2,644 |  |  | $ | — |  |  | $ | 3,647 |
Intersegment sales |  |  | 308 |  |  |  | — |  |  |  | — |  |  |  | (308 | ) |  |  | — |
Total |  |  | 1,063 |  |  |  | 248 |  |  |  | 2,644 |  |  |  | (308 | ) |  |  | 3,647 |
Costs of sales |  |  | 825 |  |  |  | 76 |  |  |  | 2,357 |  |  |  | (271 | ) |  |  | 2,987 |
Gross margin |  |  | 238 |  |  |  | 172 |  |  |  | 287 |  |  |  | (37 | ) |  |  | 660 |
Selling expenses |  |  | 1 |  |  |  | — |  |  |  | 44 |  |  |  | 1 |  |  |  | 46 |
General and administrative expenses |  |  | 48 |  |  |  | 13 |  |  |  | 79 |  |  |  | 93 |  |  |  | 233 |
Other segment items(1) |  |  | (1 | ) |  |  | (3 | ) |  |  | 12 |  |  |  | 43 |  |  |  | 51 |
Net contribution (charge) to earnings |  | $ | 190 |  |  | $ | 162 |  |  | $ | 152 |  |  | $ | (174 | ) |  | $ | 330 |
(1) Other segment items for each reportable segment includes recurring and non-recurring income and expense items. For our Timberlands segment, this includes gains on the sale of timberlands for the quarter and year-to-date period ended June 30, 2026. For our Wood Products segment, this includes product remediation insurance recoveries for the year-to-date period ended June 30, 2026. For Unallocated Items, this includes non-operating pension and other post-employment benefit costs and interest income and other for all periods presented. Refer to Note 13: Other Operating Costs, Net for additional information.
Reconciliation of Net Contribution to Earnings to Net Earnings (Loss) | Reconciliation of Net Contribution to Earnings to Net Earnings
|  | QUARTER ENDED |  |  | YEAR-TO-DATE ENDED |
DOLLAR AMOUNTS IN MILLIONS |  | JUNE 2026 |  |  | JUNE 2025 |  |  | JUNE 2026 |  |  | JUNE 2025 |
Net contribution to earnings |  | $ | 213 |  |  | $ | 165 |  |  | $ | 450 |  |  | $ | 330 |
Interest expense, net of capitalized interest |  |  | (66 | ) |  |  | (66 | ) |  |  | (132 | ) |  |  | (132 | )
Earnings before income taxes |  |  | 147 |  |  |  | 99 |  |  |  | 318 |  |  |  | 198 |
Income taxes |  |  | 15 |  |  |  | (12 | ) |  |  | — |  |  |  | (28 | )
Net earnings |  | $ | 162 |  |  | $ | 87 |  |  | $ | 318 |  |  | $ | 170 |
Additional Financial Information | Additional Financial Information
DOLLAR AMOUNTS IN MILLIONS |  | TIMBERLANDS |  |  | STRATEGIC LAND SOLUTIONS |  |  | WOOD PRODUCTS |  |  | UNALLOCATED ITEMS AND INTERSEGMENT ELIMINATIONS |  |  | CONSOLIDATED |
QUARTER ENDED JUNE 2026 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation, depletion and amortization |  | $ | 64 |  |  | $ | 4 |  |  | $ | 58 |  |  | $ | 1 |  |  | $ | 127 |
Capital expenditures |  | $ | 24 |  |  | $ | — |  |  | $ | 115 |  |  | $ | — |  |  | $ | 139 |
QUARTER ENDED JUNE 2025 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation, depletion and amortization |  | $ | 64 |  |  | $ | 4 |  |  | $ | 55 |  |  | $ | 2 |  |  | $ | 125 |
Capital expenditures |  | $ | 19 |  |  | $ | — |  |  | $ | 88 |  |  | $ | — |  |  | $ | 107 |
YEAR-TO-DATE ENDED JUNE 2026 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation, depletion and amortization |  | $ | 127 |  |  | $ | 5 |  |  | $ | 115 |  |  | $ | 4 |  |  | $ | 251 |
Capital expenditures |  | $ | 67 |  |  | $ | — |  |  | $ | 184 |  |  | $ | — |  |  | $ | 251 |
YEAR-TO-DATE ENDED JUNE 2025 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation, depletion and amortization |  | $ | 129 |  |  | $ | 6 |  |  | $ | 110 |  |  | $ | 5 |  |  | $ | 250 |
Capital expenditures |  | $ | 45 |  |  | $ | — |  |  | $ | 155 |  |  | $ | — |  |  | $ | 200 |
Total Assets | Total Assets
DOLLAR AMOUNTS IN MILLIONS |  | JUNE 30, 2026 |  |  | DECEMBER 31, 2025 |
Timberlands and Strategic Land Solutions(1) |  | $ | 12,398 |  |  | $ | 12,687 |
Wood Products |  |  | 3,368 |  |  |  | 3,194 |
Unallocated items |  |  | 747 |  |  |  | 732 |
Consolidated |  | $ | 16,513 |  |  | $ | 16,613 |
(1) Assets attributable to the Strategic Land Solutions segment are combined with total assets for the Timberlands segment as we do not produce separate balance sheets internally.

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